How 91% of carriers are prioritizing the use of data and analytic technologies to inform decisions on pricingA new report from global research firm Celent, commissioned by Equisoft, insurers have learned to prioritize and make investment decisions on how to unlock the strategic value of their data to create new opportunities for growth, process optimization and customer experience improvement. Access the full report here.
PHILADELPHIA, Sept. 15, 2021 /CNW/ – In a new report commissioned by Equisoft, global research firm Celent presents the findings of an executive study aiming to understand how North American insurers are actually creating value from their data, and how they are improving their abilities to expose and use their data for more than administrative purposes, while overcoming the key risks to realizing that value.
The Research Revealed:
- While giving customers more of what they want matters, knowing how to price for it optimizes business when things scale up;
- 91% of carriers surveyed are prioritizing the use of data and analytic technologies to inform decisions on pricing;
- The building of actuarial pricing models is where they are finding that data is creating the most value for their organizations.
This research was conducted with CIOs and other executives at large- and mid-sized North American carriers offering individual life, annuities, as well as group and voluntary insurance products.
“The volume of data collected by insurers is increasing every second and deriving value from that data has become a hot topic and one that many carriers are grappling with,” said Mark DePhillips, Senior Vice President, USA at Equisoft. “Our goal with this study is to provide insurers with practical insights on what their peers are doing with their data today, and help uncover what are the quick wins, how they can actually get value from their data right now.”
As reported by Celent, higher customer expectations for modern digital experiences are segmenting the marketplace between savvy companies and lagging companies, creating a strategic imperative for insurers to become more data-driven and to generate more value from their data through digitalization, connectivity, analytics and automation.
“Companies of all sizes are placing their greatest priority on data management, business intelligence, and Analytics/AI,” said Marty Ellingsworth, Senior Analyst, Data and Advanced Analytics, Americas at Celent. “They have more data than ever, from extensive digital transformations and integrations with various data sources, and they understand that turning this data into more valuable assets is key to sustainable competitiveness where price, ease of doing business and peace of mind matter.”
As one insurance executive revealed in the report, “No one is in charge of data quality. We have pockets of greatness surrounded by swampy moats. We put it in the cloud and are sorting it all out there.” In addition to the North American life and annuity market, this research will also be conducted in LATAM and APAC, and a global report comparing results among regions will be released by Celent in early 2022.
Excerpts From The Report
Beyond the technological hurdle of accessing legacy data, many companies face cultural roadblocks. The ongoing shift to data-driven, digital organizations is in progress and we’re seeing an evolution in the strategies, systems and structure companies employ to get the most from their data.
While it is encouraging to see how committed and excited all companies are about achieving their digital transformation, it’s clear that insurers are at different stages in the development of mature data strategies. Approaches to investment, resourcing, structure and technology vary greatly across the industry.
Celent conducted a global study using both an online quantitative survey of how insurers are creating value with their data and paired it with companion guided qualitative video interviews of incumbent executives to listen more deeply to their journey and processes for creating value with data. This research will help insurers to plan, prioritize and make investment decisions about how to unlock the strategic value of their data — and create new, potentially transformative growth, process optimization, and customer experience improvement opportunities.
Insurers increasingly have vast volumes of data that continue to grow especially as modern customers demand more digital experiences and self-service options for product access, speed, and convenience while companies seek more automation, efficiency, innovation, and effective impacts on
The objective of this research is to understand what leverage points create value from an insurer’s data and to get a clear picture of how companies improve their abilities to expose and use their data for more than administrative purposes, while overcoming key risks to realizing that value.
Founded in 1994, Equisoft is a global provider of advanced insurance and investment digital solutions. Recognized as a valued partner by over 250 of the world’s leading financial institutions in 16 countries, Equisoft offers innovative front-end applications, extensive back-office services and unique data migration expertise. The firm’s flagship products include a SaaS policy administration solution, CRM, financial needs analysis, financial planning, asset allocation, fund and portfolio analysis, quotes and illustrations, electronic application, agency management systems, as well as customer, agent and broker portals. Equisoft is also Oracle’s largest and most experienced partner for the OIPA platform. With its business-driven approach, deep industry knowledge, innovative technology, and more than 800 experts based in Canada, USA, UK, Chile, Colombia, South Africa, India and Australia, Equisoft helps its clients tackle any challenge in this era of digital disruption. For more information about our products and services, please visit www.equisoft.com.